Donie Cassidy (Fianna Fail)

I welcome the Minister of State to the House for this worthwhile debate on the organisational review programme and its second report.

The advances in technology in recent years have transformed how business is done. The private sector has embraced those advances and enhanced them, becoming more efficient in the process. They have even allowed for our wages to be paid automatically into our accounts in the financial institutions. A transformation has taken place and it is the job of Government to see the same happen in the public sector. At a time of major economic and social challenges, it is more important than ever that Government Departments and agencies assess their capacity to meet the challenges of the future in the broad areas of strategy, delivery of customer service and performance evaluation. In particular, there is a need for good organisational vision and leadership, as well as the effective deployment of people, innovation, better customer service and increased productivity.

The rapid deterioration in the public finances we have experienced in recent years has brought greater urgency to the need to improve the way in which services are provided by the public service. A more efficient and productive public service can play a key role in putting the public finances on a more sustainable footing. That is in all our interests.

The scale of the public finance problem cannot be overstated. In monetary terms, the Government has to borrow around €20 billion this year alone to bridge the gap between its income and expenditure. A substantial part of this expenditure relates to public sector employment, so it is incumbent upon us to enhance efficiency within the sector. Labour market data published earlier this week indicate some stabilisation and while this is to be welcomed, we must be under no illusion as to the extent of the labour market problem. There are also signs from our main export markets that the competitiveness of our economy has improved. Indeed, our export figures are staggering relative to what is occurring in the world economy. Our competitiveness will help to underpin the improvement in our exports in the months and years ahead.

Despite these improvements, there is a real level of uncertainty. Even with projected economic recovery over the next few years, a significant hole will still remain in the public finances. The Government recognises that an efficient, high-performing public service is essential to economic recovery. It is true that the necessity to transform our public services has never been greater, but it is also true that this process has been under way for some time. Successive Governments, in particular ones led by Fianna Fáil, have recognised the need to examine the way the public service operates. As a result, we have had initiatives such as the strategic management initiative, SMI, and Delivering Better Government. These delivered tangible results across a range of headings and provided the building blocks for the work now under way. For example, SMI brought a new focus on customer service with the advent of customer charters and customer service action plans, a theme taken up by both the OECD review of the public service and the task force on the public service. The area of human resource management saw the introduction of performance management systems and greater use of open recruitment.

The Government is also mindful of the need to test the work being undertaken and to subject it to external evaluation. For this reason, it asked the OECD to conduct a whole-of-public service review, the first time the OECD had undertaken such a review. This review was completed and reported on in 2008.

The first report of the organisational review programme, published in November 2008, focused on three Departments, Transport, Agriculture, Fisheries and Food and Enterprise, Trade and Employment, now the Department of Enterprise, Trade and Innovation. The OECD gave a generally positive assessment of the public service and the role it played in our national development. It recognised that Ireland had continually sought to modernise and reform its public service systems and practices to ensure they can continue to meet the needs and expectations of Government and citizens.

The OECD also recognised that Ireland was looking for new avenues in which to further its agenda of public service modernisation in order that it would continue to deliver improved outcomes for our people and the country, respond to changing and complex social needs and support business in gaining a competitive advantage, thereby contributing to economic growth. The organisations also recognised that there was much more to be done. According to the OECD, there is a need for a more integrated public service and a greater performance focus, with more information being gathered on outputs and outcomes and what has actually been achieved.

With this in mind, the OECD recommended that the requirement to produce output statements, introduced under SMI but largely confined to Departments and Government offices, should be extended to every State body. Thus, the second report of the organisational review programme under discussion today includes the findings of the reviews of a further four Departments and follow-up action plans prepared by each of their managements. The Departments and offices in question are the Department of Health and Children, the Office of the Revenue Commissioners, the Central Statistics Office and the Property Registration Authority.

I note from the Minister of State, Deputy Curran, that a third round is well advanced and that reviews are being undertaken of the Departments of Education and Skills, the Environment, Heritage and Local Government, Foreign Affairs and the Taoiseach. Clearly, the Government attaches the highest priority to the transformation agenda, as reflected in the arrangements in place for its implementation. The Taoiseach chairs a Cabinet committee which includes the Ministers for Finance, Education and Skills, the Environment, Heritage and Local Government, Health and Children and Justice and Law Reform. A steering group of Secretaries General meets regularly to prepare the work of the Cabinet committee.

There have been important developments in the way we approach our business as a result of the transformation agenda and progress has already been made under a number of headings. In terms of human resources, measures have been put in place that continue to contribute to the implementation of expenditure savings. These include the incentivised scheme of early retirement in the public service, the special Civil Service career break scheme and the shorter working year scheme, together with restrictions on the filling of public service vacancies by recruitment or promotion.

Without a doubt, a more integrated public service that is leaner, more effective and more focused on the needs of the people it serves is required if it is to contribute to the process of returning Ireland to economic growth and prosperity. I agree 100% with the Minister of State, according to whom it is these times of exceptional economic and social challenge that are driving the urgent need for greater cost effectiveness and efficiency in many areas of the public service. It is clear that the Government is sincere in its desire to examine honestly the public sector, to acknowledge best practice in order that others may benefit and to identify key areas for improvement.